1. [30 points] Consider a region with a population of 16 million, where everyone lives in a single city, Atlantic (PA=16). The urban utility curve for Atlantic reaches its maximum with 7 million population and includes the following combinations: Urban Utility Curve Population 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Utility 17 30 41 53 52 67 72 67 62 57 52 47 42 37 32 27 Suppose the regional government decides to establish a new city, Pacific based on the structure of Atlantic, i.e. Atlantic and Pacific has the same urban utility curve. Assume the regional government initiated an involuntary (forced) migration of 2 million from Atlantic to Pacific (PA=14, Pp=2). a. What would the utilities and population in each city be right after the forced migration? Sketch and depict on a utility curve. b. Who are the winners and losers of such a move from Atlantic to Pacific? c. Is this allocation (PA=14, Pp=2) an equilibrium? Explain why or why not. If an equilibrium, determine whether stable or unstable. If not an equilibrium, determine what would happen numerically. d. What if the moving costs between the two cities were equal to 10 units of utility loss? Would this be an equilibrium? If so, what type? If not, determine what happens. e. What is the minimum number of people the regional government should forcefully move such that we can observe / reach non-zero population levels in both cities in equilibrium? [Assume no moving costs. Give a range, you can't calculate without knowing exact slope] f. What are the stable equilibria (find all) of population between two cities in this region, when no moving costs and total population is 16M